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Revenues and Contract Balances
 6 Months Ended
Dec. 31, 2022
Revenue From Contract With Customer [Abstract]  
Revenues and Contract Balances

Note 4 – Revenues and Contract Balances

Disaggregation of Revenues

The Company disaggregates revenues by contract type, customer type, prime vs. subcontractor, and whether the solution provided is primarily Expertise or Technology.  These categories represent how the nature, amount, timing, and uncertainty of revenues and cash flows are affected.

Disaggregated revenues by contract type were as follows (in thousands):

 

 

 

Three Months Ended

 

 

Six Months Ended

 

 

 

December 31, 2022

 

 

December 31, 2022

 

 

 

Domestic

 

 

International

 

 

Total

 

 

Domestic

 

 

International

 

 

Total

 

Cost-plus-fee

 

$

953,344

 

 

$

—

 

 

$

953,344

 

 

$

1,888,090

 

 

$

—

 

 

$

1,888,090

 

Fixed-price

 

 

478,201

 

 

 

31,155

 

 

 

509,356

 

 

 

926,763

 

 

 

64,366

 

 

 

991,129

 

Time-and-materials

 

 

173,630

 

 

 

13,086

 

 

 

186,716

 

 

 

349,217

 

 

 

26,739

 

 

 

375,956

 

Total

 

$

1,605,175

 

 

$

44,241

 

 

$

1,649,416

 

 

$

3,164,070

 

 

$

91,105

 

 

$

3,255,175

 

 

 

 

Three Months Ended

 

 

Six Months Ended

 

 

 

December 31, 2021

 

 

December 31, 2021

 

 

 

Domestic

 

 

International

 

 

Total

 

 

Domestic

 

 

International

 

 

Total

 

Cost-plus-fee

 

$

889,358

 

 

$

—

 

 

$

889,358

 

 

$

1,783,071

 

 

$

—

 

 

$

1,783,071

 

Fixed-price

 

 

400,011

 

 

 

33,279

 

 

 

433,290

 

 

 

774,485

 

 

 

66,510

 

 

 

840,995

 

Time-and-materials

 

 

148,881

 

 

 

14,249

 

 

 

163,130

 

 

 

324,416

 

 

 

28,194

 

 

 

352,610

 

Total

 

$

1,438,250

 

 

$

47,528

 

 

$

1,485,778

 

 

$

2,881,972

 

 

$

94,704

 

 

$

2,976,676

 

Disaggregated revenues by customer type were as follows (in thousands):

 

 

 

Three Months Ended

 

 

Six Months Ended

 

 

 

December 31, 2022

 

 

December 31, 2022

 

 

 

Domestic

 

 

International

 

 

Total

 

 

Domestic

 

 

International

 

 

Total

 

Department of Defense

 

$

1,160,060

 

 

$

—

 

 

$

1,160,060

 

 

$

2,255,380

 

 

$

—

 

 

$

2,255,380

 

Federal Civilian agencies

 

 

399,768

 

 

 

—

 

 

 

399,768

 

 

 

823,855

 

 

 

—

 

 

 

823,855

 

Commercial and other

 

 

45,347

 

 

 

44,241

 

 

 

89,588

 

 

 

84,835

 

 

 

91,105

 

 

 

175,940

 

Total

 

$

1,605,175

 

 

$

44,241

 

 

$

1,649,416

 

 

$

3,164,070

 

 

$

91,105

 

 

$

3,255,175

 

 

 

 

Three Months Ended

 

 

Six Months Ended

 

 

 

December 31, 2021

 

 

December 31, 2021

 

 

 

Domestic

 

 

International

 

 

Total

 

 

Domestic

 

 

International

 

 

Total

 

Department of Defense

 

$

1,037,014

 

 

$

—

 

 

$

1,037,014

 

 

$

2,037,141

 

 

$

—

 

 

$

2,037,141

 

Federal Civilian agencies

 

 

371,897

 

 

 

—

 

 

 

371,897

 

 

 

785,561

 

 

 

—

 

 

 

785,561

 

Commercial and other

 

 

29,339

 

 

 

47,528

 

 

 

76,867

 

 

 

59,270

 

 

 

94,704

 

 

 

153,974

 

Total

 

$

1,438,250

 

 

$

47,528

 

 

$

1,485,778

 

 

$

2,881,972

 

 

$

94,704

 

 

$

2,976,676

 

 

Disaggregated revenues by prime vs. subcontractor were as follows (in thousands):

 

 

 

Three Months Ended

 

 

Six Months Ended

 

 

 

December 31, 2022

 

 

December 31, 2022

 

 

 

Domestic

 

 

International

 

 

Total

 

 

Domestic

 

 

International

 

 

Total

 

Prime contractor

 

$

1,420,367

 

 

$

40,472

 

 

$

1,460,839

 

 

$

2,827,821

 

 

$

83,328

 

 

$

2,911,149

 

Subcontractor

 

 

184,808

 

 

 

3,769

 

 

 

188,577

 

 

 

336,249

 

 

 

7,777

 

 

 

344,026

 

Total

 

$

1,605,175

 

 

$

44,241

 

 

$

1,649,416

 

 

$

3,164,070

 

 

$

91,105

 

 

$

3,255,175

 

 

 

 

Three Months Ended

 

 

Six Months Ended

 

 

 

December 31, 2021

 

 

December 31, 2021

 

 

 

Domestic

 

 

International

 

 

Total

 

 

Domestic

 

 

International

 

 

Total

 

Prime contractor

 

$

1,292,529

 

 

$

43,317

 

 

$

1,335,846

 

 

$

2,591,182

 

 

$

86,223

 

 

$

2,677,405

 

Subcontractor

 

 

145,721

 

 

 

4,211

 

 

 

149,932

 

 

 

290,790

 

 

 

8,481

 

 

 

299,271

 

Total

 

$

1,438,250

 

 

$

47,528

 

 

$

1,485,778

 

 

$

2,881,972

 

 

$

94,704

 

 

$

2,976,676

 

Disaggregated revenues by expertise or technology were as follows (in thousands):

 

 

 

Three Months Ended

 

 

Six Months Ended

 

 

 

December 31, 2022

 

 

December 31, 2022

 

 

 

Domestic

 

 

International

 

 

Total

 

 

Domestic

 

 

International

 

 

Total

 

Expertise

 

$

725,503

 

 

$

16,117

 

 

$

741,620

 

 

$

1,443,153

 

 

$

32,670

 

 

$

1,475,823

 

Technology

 

 

879,672

 

 

 

28,124

 

 

 

907,796

 

 

 

1,720,917

 

 

 

58,435

 

 

 

1,779,352

 

Total

 

$

1,605,175

 

 

$

44,241

 

 

$

1,649,416

 

 

$

3,164,070

 

 

$

91,105

 

 

$

3,255,175

 

 

 

 

Three Months Ended

 

 

Six Months Ended

 

 

 

December 31, 2021

 

 

December 31, 2021

 

 

 

Domestic

 

 

International

 

 

Total

 

 

Domestic

 

 

International

 

 

Total

 

Expertise

 

$

668,209

 

 

$

18,100

 

 

$

686,309

 

 

$

1,351,833

 

 

$

37,522

 

 

$

1,389,355

 

Technology

 

 

770,041

 

 

 

29,428

 

 

 

799,469

 

 

 

1,530,139

 

 

 

57,182

 

 

 

1,587,321

 

Total

 

$

1,438,250

 

 

$

47,528

 

 

$

1,485,778

 

 

$

2,881,972

 

 

$

94,704

 

 

$

2,976,676

 

 

Changes in Estimates

Aggregate net changes in estimates for the three and six months ended December 31, 2022 reflected an increase to income before income taxes of $5.8 million ($0.18 per diluted share) and $11.5 million ($0.36 per diluted share), respectively, compared with $5.5 million ($0.17 per diluted share) and $8.2 million ($0.26 per diluted share), for the three and six months ended December 31, 2021.  The Company uses its statutory tax rate when calculating the impact to diluted earnings per share.

Revenues recognized from previously satisfied performance obligations were not material for the three and six months ended December 31, 2022 and 2021, respectively.  The change in revenues generally relates to final true-up adjustments for estimated award or incentive fees in the period in which the customer’s final performance score was received or when it can be determined that more objective, contractually-defined criteria have been fully satisfied.  

Remaining Performance Obligations

As of December 31, 2022, the Company had $8.6 billion of remaining performance obligations and expects to recognize approximately 47% and 67% over the next 12 and 24 months, respectively, with the remainder to be recognized thereafter.

Contract Balances

Contract balances consisted of the following (in thousands):

 

 

 

 

 

December 31,

 

 

June 30,

 

Description of Contract Related Balance

 

Financial Statement Classification

 

2022

 

 

2022

 

Billed and billable receivables

 

Accounts receivable, net

 

$

753,254

 

 

$

800,597

 

Contract assets – current unbilled receivables

 

Accounts receivable, net

 

 

115,375

 

 

 

125,547

 

Contract assets – current costs to obtain

 

Prepaid expenses and other current assets

 

 

5,186

 

 

 

5,167

 

Contract assets – noncurrent unbilled receivables

 

Accounts receivable, long-term

 

 

11,843

 

 

 

10,199

 

Contract assets – noncurrent costs to obtain

 

Other long-term assets

 

 

9,197

 

 

 

10,703

 

Contract liabilities – current deferred

   revenue and other contract liabilities

 

Other accrued expenses and current liabilities

 

 

(110,227

)

 

 

(84,810

)

Contract liabilities – noncurrent deferred

   revenue and other contract liabilities

 

Other long-term liabilities

 

 

(6,308

)

 

 

(7,552

)

 

During the three and six months ended December 31, 2022, we recognized $7.6 million and $58.1 million of revenues, respectively, compared with $13.6 million and $68.3 million of revenues for the three and six months ended December 31, 2021, that was included in a previously recorded contract liability as of the beginning of the period.